BAB Holdings, Inc. Reports Record Earnings for Fiscal 1998.CHICAGO--(BUSINESS WIRE)--Feb. 16, 1999--BAB Holdings, Inc. (Nasdaq: BAGL BAGL Big Air Gaming League (video game organization) ), the Chicago-based operator of Big Apple Bagels Big Apple Bagels is a US franchised chain of bakery-cafes. Coffee, along with a variety of other related products are sold. The products are sold as three different brands; Big Apple Bagels, Brewster's Coffee, and My Favorite Muffin.[1] BAB, Inc. , My Favorite My Favorite is an independent synthpop band from Long Island, New York. They released two CDs: Love at Absolute Zero and Happiest Days of Our Lives. My Favorite broke up on September 14, 2005, when singer Andrea Vaughn left the band. Muffin, and Brewster's Coffee concept stores, reported earnings of $.06 per share for the year ending November November: see month. 30, 1998, compared to a loss of $.55 per share for the year ended November 30, 1997, as strategic initiatives implemented last year produced the planned results. Fourth Quarter 1998 Results Total revenues for the fourth quarter were $3.5 million. Royalty fees from franchise stores increased approximately 14% to $800,000 for the quarter. The increase is attributable to new store openings and incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. sales at the retail level which were propelled by product development and integration of BAB's three brands. Forty-one stores were opened in fiscal 1998, the majority featuring the successful new tri-brand concept. Licensing fees and other revenues increased to $543,000 for the quarter. The Company is leveraging its selling, general, and administrative expenses over its increased revenue streams. Selling, general and administrative expenses, net of amortization and depreciation, declined as a percent of total revenues in the fourth quarter, from 45.8% in 1997 to 32.2% in 1998. BAB is fulfilling its commitment to an efficient infrastructure that provides for profitable expansion. The fourth quarter was the third consecutive profitable quarter for BAB. Earnings before interest, taxes, depreciation and amortization Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
"Our strategy for growth in 1998 focused strongly on the combined presentation of our three brands in traditional units as well as expanded presence in non-traditional venues," said Michael W. Evans Ev·ans , Herbert McLean 1882-1971. American anatomist who isolated four pituitary hormones and discovered vitamin E (1922). , President and Chief Executive Officer. "While 1998 was a year of downward trends among our competitors, our system was strengthened by carefully planned growth initiatives. We are continuing to develop a strong foundation to help us maintain the leadership position." Fiscal 1998 Results For the twelve-month period ended November 30, 1998, total revenues were $14.5 million. Royalty fees from franchise stores increased 34% to $3.2 million for fiscal 1998. Licensing fees and other revenues for the twelve-month period increased 41% to $1.3 million as the Company continued to exploit non-traditional distribution of its branded products. As expected, net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight by Company owned stores decreased with the closure of seven stores that took place at the end of 1997. Selling, general, and administrative expenses, net of amortization and depreciation, declined as a percent of total revenues for the fiscal year, from 35.8% in 1997 to 31.9% in 1998. For the twelve months ended November 30, 1998, EBITDA was $1,915,000 versus a loss of $1,912,000 in the comparable 1997 period, an improvement in excess of $3.8 million. Net income attributable to common shareholders was $500,000 or $0.06 per share for the twelve-month period ended November 30, 1998, after taking into account $148,000 in non-cash preferred dividends preferred dividend n. a payment of a corporation's profits to holders of preferred shares of stock. (See: preferred stock) accumulated ac·cu·mu·late v. ac·cu·mu·lat·ed, ac·cu·mu·lat·ing, ac·cu·mu·lates v.tr. To gather or pile up; amass. See Synonyms at gather. v.intr. To mount up; increase. during the period. For the twelve months ended November 30, 1998, system-wide revenues were $79 million, a 27% increase over the prior year. "The integration of the My Favorite Muffin brand has benefits that reach beyond the traditional store environment. We anticipate revenues from the sales of gift baskets A gift basket, or fruit basket is typically a gift that is delivered to the recipient at their home or workplace. There are different varieties of gift baskets, some which have fruit only, some with dry/canned goods only (such as tea, crackers and jam) although the standard through BAB's new web-site will be a major element of future growth," said Evans. "We are currently preparing our new commissary COMMISSARY. An officer whose principal duties are to supply the army with provisions. 2. The Act of April 14, 1818, s. 6, requires that the president, by and with the consent of the senate, shall appoint a commissary general with the rank, pay, and emoluments to accommodate the opportunities available to develop this new mode of our gift business." Evans continued, "In addition, we are looking forward to further development within our international franchise system, which was launched in 1998 with the opening of three stores in Lima, Peru. We expect to see increased benefits from global development in 1999." BAB Holdings, Inc. operates, franchises, and licenses Big Apple Bagels, My Favorite Muffin, and Brewster's Coffee concept stores and currently has units in 32 states, two Canadian provinces Noun 1. Canadian province - Canada is divided into 12 provinces for administrative purposes province, state - the territory occupied by one of the constituent administrative districts of a nation; "his state is in the deep south" , and Peru. Recently it acquired the assets of Jacobs Bros BROS Brothers BROS Benefits and Retirement Operations Section (King County, Washington) BROS Barnes and Richmond Operatic Society (London, UK) ., a Chicago based bagel bakery chain, including eight stores and a central commissary facility. The Company has licensing agreements with Host Marriott, Mrs. Fields Mrs. Fields Cookies is a chain of bakeries, located mostly in the United States, founded by Debbi Fields (b. 1956, Park City, Utah). Mrs. Fields and her husband started their business in the late 1970s, opening the first of many retail bakeries in Palo Alto, California, selling Cookies, Oberweis Dairy Oberweis Dairy, headquartered in North Aurora, Illinois, is the parent company of several dairy-related operations in the midwest region of the United States. Its businesses include a home delivery service available in parts of Illinois, Indiana, Missouri, and Wisconsin, which , Miami Subs Corporation, Alonti Deli's and Choice Picks Food Courts. The Company's stock is traded on the Nasdaq Small-Cap Small-cap A stock with a small capitalization, meaning a total equity value of less than $500 million. small-cap 1. Of or relating to the common stock of a relatively small firm having little equity and few shares of common stock market under the symbol "BAGL" and its web site can be visited at www.babholdings.com. Certain statements contained in this press release, including statements regarding the development of the company's business, the markets for the company's products, anticipated capital expenditures, and the effects of completed and proposed acquisitions, and other statements contained herein regarding matters that are not historical facts, are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. (as such term is defined in the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995). Because such statements include risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Certain risks and uncertainties are outside the control of the company and its management, including its ability to attract new franchisees; the continued success of current franchisees; the effects of competition on franchisee and company-owned store results; consumer acceptance of the company's products in new and existing markets; fluctuation Fluctuation A price or interest rate change. in development and operating costs operating costs npl → gastos mpl operacionales ; brand awareness; availability and terms of capital; adverse publicity; acceptance of new product offerings; availability of locations and terms of sites for store development; food, labor and employee benefit costs; changes in government regulation (including increases in the minimum wage law); regional economic and weather conditions; the hiring, training, and retention of skilled corporate and restaurant management; and the integration and assimilation Assimilation The absorption of stock by the public from a new issue. Notes: Underwriters hope to sell all of a new issue to the public. See also: Issuer, Underwriting Assimilation of acquired concepts. Some of these risks and uncertainties are wholly outside of the control of the company. Accordingly, readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management's analysis only as of the date hereof here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" . The company undertakes no obligation to publicly release the results of any revision to these forward-looking statements which may be made to reflect events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or after the date hereof or to reflect the occurrence of unanticipated events. --Table Follows--
BAB Holdings, Inc.
Condensed Consolidated Statements of Operations
(in thousands, except per-share and percentage amounts)
Quarter Ended Year Ended
Nov. 30 Nov. 30
---------------------- ----------------------
% %
1998 1997 change 1998 1997 change
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REVENUES
Net sales by Company-
owned stores $1,954 $2,928 -33.27% $8,930 $9,846 -9.30%
Royalty fees from
franchised stores 800 703 13.80% 3,178 2,367 34.26%
Franchise and area
development fees 256 232 10.34% 1,104 1,005 9.85%
Licensing fees and
other income 543 156 248.08% 1,338 948 41.14%
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3,553 4,019 -11.59% 14,550 14,166 2.71%
OPERATING COSTS AND EXPENSES
Food, beverage and
paper costs 689 986 -30.12% 2,998 3,310 -9.43%
Store payroll and
other operating
expenses 1,146 1,888 -39.30% 5,213 5,859 -11.02%
Reserve for impairments
and store closures - 1,837 N/M - 1,837 N/M
Depreciation and
amortization 275 501 -45.11% 1,180 1,490 -20.81%
Selling, general and
administrative
expenses 1,145 1,842 -37.84% 4,643 5,076 -8.53%
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3,255 7,054 -53.86% 14,034 17,572 -20.13%
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Income (loss) before
interest and other 298 (3,035) N/M 516 (3,406) N/M
Interest expense 55 43 27.91% 206 75 174.67%
Interest income 36 26 38.46% 119 75 58.67%
Other income 51 4 N/M 55 4 N/M
Income tax benefit 164 - N/M 164 - N/M
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Net income (loss) 494 (3,048) N/M 648 (3,402) N/M
Preferred stock
dividend accumulated 30 50 148 648 -77.16%
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Net income (loss)
attributable to common
shareholders $ 464 $(3,098) N/M $ 500 $(4,050) N/M
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Earnings (loss) per
common shares-basic $0.06 $(0.40) N/M $0.06 $(0.55) N/M
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Average number of
shares outstanding $8,376 $7,700 8.78% $8,101 $7,421 9.16%
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Earnings (loss) per
common shares-diluted $0.40 $(0.40) N/M $0.06 $(0.55) N/M
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Average number of
shares outstanding 11,296 7,700 46.70% 10,508 7,421 41.60%
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EBITDA $ 788 $(2,530) N/M $1,915 $(1,912) N/M
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System-wide
revenues $24,450 $18,501 32.16% $78,995 $62,322 26.75%
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